This order is subject to further editing and
modification.The final version will
appear in the bound volume of the official reports.

No.04-02

In the matter of the Amendment of Supreme Court Rules
12.04 and 12.05 – Client’s Security Fund and Supreme Court Rule 22.29 –
Petitions for Reinstatement.

FILED

AUG 2, 2004

Cornelia G. Clark

Clerk of Supreme Court

Madison, WI

On April 21, 2004, the court
held a public hearing on the petition filed January 21, 2004, by the Board of
Governors for the State Bar of Wisconsin, seeking to amend Supreme Court Rules
12.04, 12.05, and 22.29, so as to rename the Clients’ Security Fund the Wisconsin
Lawyers’ Fund for Client Protection, and to amend and clarify the requirements
for petitions for reinstatement.At the
ensuing open administrative conference the court unanimously adopted the
petition.

IT IS ORDERED that, effective
January 1, 2005, Supreme Court Rule Chapters 12 and 22 are amended as follows:

Section 1.12.04
(title) and (1) of the supreme court rules are amended to read:

(1)
A clients’ security fundWisconsin Lawyers’ Fund for Client
Protection of the state bar of Wisconsin is created to reimburse, to the
extent and in the manner provided by this chapter, losses caused by the
dishonest conduct of members of the state bar of Wisconsin.

COMMENT

The Wisconsin Lawyers’ Fund
for Client Protection was established in 1981 and was originally entitled The
Clients' Security Fund.The name change
reflects amendments to the ABA Model Rules for Lawyer’s Funds for Client
Protection, and is more descriptive of the funds’ purpose.

Section 2.12.04 (2) (intro.), (d) and (f) of the
supreme court rules are amended to read:

(f)“Fund” means the clients’ security fundWisconsin lawyers’ fund for client protection of the state bar of
Wisconsin.

Section 3.12.05(1) of the supreme court rules is amended to read:

12.05(1)The fund shall be operated and administered
by the committee of the state bar to be known as the clients’security fundWisconsin lawyers’ fund for client protection committee.The committee shall consist of 5 lawyers and
2 nonlawyer members who are appointed by the president of the state bar.
The initial terms of the members are: one lawyer to serve until July 1, 1982;
one lawyer to serve until July 1, 1983; one lawyer and one nonlawyer member to
serve until July 1, 1984; one lawyer to serve until July 1, 1985; one lawyer
and one nonlawyer member to serve until July 1, 1986. Upon the expiration
of the initial appointments, each subsequent appointment shall be for a term of
5 years. No person who has served a full term of 5 years shall be
eligible for reappointment until one year after the termination of his or her
last term. A vacancy on the committee shall be filled by appointment by
the president of the state bar for the unexpired term.

Section
4.22.29(4)(m) of the supreme court rules is
amended to read:

22.29 (4) (m)The petitioner has made restitution to or settled all claims of
persons injured or harmed by petitioner’s misconduct, including
reimbursement to the Wisconsin lawyers’ fund for client protection for all
payments made from that fund, or, if not, the petitioner’s
explanation of the failure or inability to do so.

COMMENT

An attorney seeking
reinstatement of a suspended or revoked license is required to reimburse the
Fund for any payments made to injured clients as a result of the attorney’s
conduct, or to explain why this is not possible. Fund payment to a client
signifies that the lawyer’s dishonest conduct caused a loss that was restored
through an assessment against all members of the bar. The attorney responsible should
be required to reimburse the Fund before resuming practice. In cases where the
attorney demonstrates that he or she cannot make full restitution to injured
clients and to the Fund, the Fund will defer its right to reimbursement until
the clients have been made whole.

IT IS ORDERED that notice of this amendment of SCR
12.04, 12.05, and 22.29 be given by a single publication of a copy of this
order in the official state newspaper and in an official publication of the
State Bar of Wisconsin.